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What To Do After A Bad Incrementality Test Result | Open Haus Playbook
Main summary
Key takeaways
What “bummer news” means in incrementality testing
A poor incrementality result is framed as a business learning opportunity, not a failure—because it reveals what your business actually gets from a channel beyond what attribution dashboards imply.
Common “bummer” symptoms
- CPIA (cost per incremental acquisition) is much higher than expected
- Incrementality rows (incremental outcome “rows”) are low
- Lift % is low
- Incremental ROAS is very low
- Sometimes channels perform much worse than the team’s efficiency benchmark (example cited: up to ~700% worse)
Framework: Reframe the poor result into decisions + next-step actions
The presenters emphasize that the critical work is what you do after the test—financial, operational, and creative.
Three buckets of “bummer news”
-
Baseline channel / undervalued-attribution channel
- Example: YouTube, CTV, and other channels thought to be undervalued by click-based attribution
- Result: Can come back closer to “normal” than expected (not always disastrous)
-
Hype new channel
- Example: Apple “11”, Snapchat, Reddit-style “everyone is piling in” channels
- Result: Can come back far worse than expected (example cited: ~700% worse)
-
Sacred cow
- A channel with massive historic spend
- Result: Low lift and inefficient incremental economics
- Implication: Your historical operation may have been misleading due to attribution/measurement blind spots
KPI / metrics explicitly used (and how they drive action)
- Lift %: Low lift triggers re-evaluation of channel efficiency and spend allocation
- CPIA: High CPIA vs expectations indicates poor incremental economics
- Incremental ROAS: Very low implies weak incremental returns
- Incremental contribution to revenue: (example provided below)
Concrete example: YouTube test result and what it changes
YouTube experiment (e-commerce brand)
- Design: Treatment = YouTube Ads; Holdout = no YouTube Ads
- Duration: 6-week test + 3-week lag window (total 9 weeks maturity)
- Observed outcome: YouTube drove only 0.28% of contribution in revenue
- Interpretation:
- If you removed YouTube, you’d lose only 0.28% of contribution (per the test framing)
Management decision implication
Either:
- Improve YouTube using evidence, or
- Reallocate budget (and free marketing time) toward incremental channels
How to communicate “bummer news” to finance / leadership
Key messaging tactic
- “We now have a data point we didn’t have before.”
- This reshapes how media investment should be deployed—return to profit, R&D/creative iteration, or other incremental channels.
- Finance should be positioned as learning the true incremental economics, so budget can be corrected or repurposed rather than justified by dashboards.
Quote used as a rationale
- If media dollars were truly delivering business outcomes, you’d “go buy lottery tickets,” implying attribution/assumptions shouldn’t be treated as truth without incrementality.
Post-test playbook: the decision tree (care vs don’t care)
If you don’t care about the channel (cut / redeploy)
Triggered when results show low lift/efficiency (e.g., low incremental contribution, high CPIA).
Actions:
- Redeploy budget to a more incremental channel (already tested or proven)
- Use freed budget for activation (e.g., launching in a major city) or for creative/marketing initiatives previously constrained by budget
- Reduce operational complexity and free bandwidth/time for higher-impact marketing work
If you do care about the channel (make it work)
When leadership buy-in exists that the channel can earn share of wallet, improvement paths include:
- One-to-one approach (methodical)
- Fire hose approach (rapid, larger bets)
Also noted:
- Maintain a short-term vs long-term balance—tests run for weeks (6–12), but channel effects may have longer-term implications.
Two operational strategies to follow the baseline test
1) One-to-one approach (“sandwich” of tactical tests)
Goal: improve the channel while keeping causal clarity.
Process (baseline → 2 tactical tests → re-baseline)
- Baseline = your low-lift test result
- Next, run two tactical tests you have high conviction in (in a “sandwich” pattern)
- Creative optimization
- Media buying optimization
- After improvements (e.g., 1–2 months later), re-baseline
Example target result format:
- Lift improves (e.g., 1% → 4%)
- CPIA drops (e.g., $1500 → $500)
Operational requirements
- Build and document hypotheses (why lift was low), then test them cleanly
- Don’t pile too many changes at once, or you lose clarity on what caused improvement
- Maintain a historical backlog of what changed over time (ad tech/market shifts can alter performance)
Concrete hypothesis examples
- Creative
- Test brand story vs direct response
- Test mobile-heavy vs other creative story angles
- Media buying
- YouTube: test CTV screen vs computer screens targeting
- Paid social: attribution settings (e.g., 1-day click vs 7-day click, 1-day view)
- Persona expansion: broader spending toward a high-value customer persona not previously built for
2) Fire hose approach (“machine gun”)
Goal: unlock a breakthrough fast when you believe the channel is strategically important.
Process
- Run rapid succession of two-cell tests with big swings (creative and/or audience targeting)
- Change faster than A/B-style incremental tuning
- Continue testing until one of two outcomes:
- Efficiency skyrocks after a later swing (sometimes after 1 more test)
- After 3–5 tests, conclude the channel fit isn’t right and move on
Speed-to-win example
- A brand fell ~6% below target
- Identified a creative theme and oriented the entire account around it
- Retested and improved immediately after the second baseline (showing potential rapid upside)
When to choose which
- Fire hose: best for net-new channel expansion and new ad product experimentation
- One-to-one: best when the channel has been working historically, and you’re refining incrementally
Additional case studies / examples cited
Javy Coffee (creative shift case)
- Shift: bottom-of-funnel direct-response (pricing/promos) → top-of-funnel value proposition / awareness
- Result: 13x lift (between the exploratory awareness creative and the direct-response creative)
Consumer electronics brand (YouTube ROAS improvement)
- Improved YouTube ROAS by 400%
- Path:
- Baseline → one-to-one iteration
- Then a three-cell test comparing creative styles
- Brand story creative vs product creative
- Winner: brand story creative
- Next: audience targeting after establishing the creative “breakthrough”
Playbook: tactical experiment “menu”
The team notes there are dozens of tactical experiments beyond what’s shown—often hundreds tailored to specific brands. The discussion highlights that the “sandwich” generally covers:
- Creative optimization
- Media buying optimization
- Then re-baseline
Key takeaways / management principles
- A poor incrementality result is a learning gift because it uncovers profitability-relevant truths you can’t infer from traditional attribution.
- The goal isn’t to “win the test”; it’s to drive behavioral change in media allocation, creative resourcing, and operational focus.
- Even perfect results won’t change the business unless you act on them—doing nothing means nothing changes.
Presenters / sources
- Dean Gordon, Measurement Strategist, House Analytics (Open Haus Playbook)
- Ike Armstrong, Measurement Strategist, House Analytics (Open Haus Playbook)
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